How Does Intrinsic Value Relate to the Concept of ‘Moneyness’?
Intrinsic value is the quantitative measure of an option's 'moneyness.' An option with positive intrinsic value is 'in-the-money' (ITM). An option with zero intrinsic value is either 'at-the-money' (ATM) or 'out-of-the-money' (OTM).
Moneyness is the categorization of the option's current profitability.
